Affordable Life Insurance for Seniors: Protection That Fits Your Budget
Securing the financial future of your loved ones is one of the most caring decisions you can make. Life insurance provides valuable peace of mind for seniors looking to protect their family from unexpected expenses. With insurance, you’ll safeguard your assets and your loved ones, giving you confidence that they’ll be taken care of. With the quality of life in Canada, it’s no wonder many seniors are exploring their insurance options. The truth is, there are many affordable plans designed specifically for Canadians in their golden years.
Understanding Your Life Insurance Options
The first decision you need to make when it comes to choosing the right life insurance is whether you want Term or Whole Life Insurance, or if you simply want End of Life (Funeral) Insurance. Each has its own pros and cons, as explained below.
Term Life Insurance
Term life insurance covers you for a specified amount of time. It could be 10, 15, or 20 years. Term life insurance is less expensive than whole life insurance. It’s a good option if you want coverage for a short time like until your mortgage is paid off or your grandchildren have grown up.
When to choose this option: For seniors over 65, term life insurance can be ideal if you have specific financial obligations with a clear end date. If you’re still carrying a mortgage that will be paid off in 5-10 years, a 10-year term policy provides targeted protection. Many insurance companies offer terms up to age 80 or 85, making this a practical option if you want affordable coverage for a specific period rather than lifetime protection. Term insurance is also worth considering if you want to ensure your spouse has additional income for a certain number of years after your passing.
Whole Life Insurance
The other type of insurance policy you can buy is a permanent or whole life one. If you’re considering buying whole life insurance, keep in mind that the cash value that accumulates is not added to the amount your beneficiaries get. However, this permanent coverage lasts your entire lifetime with the security of fixed premiums.
When to choose this option: This is ideal if you want lifelong coverage and the option to build cash value over time. If leaving a legacy is important to you, regardless of when you pass away, whole life provides that guarantee.
Final Expense Insurance
A funeral insurance policy is also called burial insurance or final expense insurance policy. Funeral insurance is a permanent life insurance product, meaning it does not expire, and is active for as long as you pay the monthly premiums. In Canada, the expected costs of a funeral have been increasing. In 2025, expenses currently range from $5,000 to $15,000 or more for a more moderate funeral.
When to choose this option: If your main concern is not burdening your family with funeral costs, this focused coverage is perfect. For peace of mind, you know that this financial obligation is covered if you unexpectedly pass.
Medical vs No Medical Life Insurance
For seniors, the medical requirements of life insurance policies can be a significant consideration. This is health insurance and you’ll be asked some health and lifestyle questions during the application process. These are standard for most insurance products. The underwriters want to gather information about your medical history and risk factors.
Fully Underwritten Policies
These traditional policies require a complete medical exam and detailed health questionnaire. The healthier you are, the lower your premiums. While the process is more involved, these policies typically offer the lowest premiums and highest coverage amounts if you’re in good health.
When to choose this option: If you’re a healthy senior with no significant medical conditions, this option will provide the most coverage for your premium dollar. The medical exam is usually free and can be conducted in your home.
Simplified Issue Life Insurance
Simplified issue policies don’t require a medical exam but do include several health questions. These policies strike a balance between accessibility and affordability.
When to choose this option: This is ideal for seniors who have minor health issues but are generally in good health. If you want to avoid the hassle of a medical exam but can answer “no” to most serious health questions, simplified issue offers reasonable premiums with less underwriting. Many seniors over 65 find this option provides the best balance of convenience and cost.
Guaranteed Issue Life Insurance
Guaranteed issue policies have no medical exam and no health questions—acceptance is guaranteed regardless of your health. Because funeral insurance is usually easier to obtain, this is an easier way to arrange for final expenses to be covered.
When to choose this option: For seniors with serious health conditions like cancer, heart disease, or diabetes with complications, guaranteed issue may be the only option available. While premiums are higher and coverage amounts are typically limited, these policies ensure that everyone can obtain some level of protection. Most guaranteed issue policies have a waiting period during which only premiums paid (plus interest) are returned if death occurs from natural causes.
How Much Coverage Do You Really Need?
When calculating how much insurance coverage you need, add up all your debts, including your mortgage payments and other expenses. It is a good idea to include funeral costs in this calculation.
How much insurance coverage you need depends on your circumstances. Individuals who have dependents that rely on them for financial stability may want to take out more coverage than those who are single.
Quick calculation guide:
Add up remaining debts (mortgage, loans, credit cards)
Include estimated funeral costs ($10,000-15,000 for planning purposes)
Consider income replacement if others depend on your pension
Factor in any legacy gifts you wish to leave
If you cannot afford as much life insurance as you’d like, buying the option that fits your budget will still be worth it. It’s better to provide your family with some financial support rather than leave them with nothing.
Finding Coverage That Matches Your Age
Different age groups have different considerations when shopping for life insurance:
Ages 50-65:
All policy types available with competitive rates. Consider longer-term policies while rates are lower.Ages 66-75:
Term (shorter periods), whole life, and guaranteed issue policies. Focus on policies with simplified underwriting if health is a concern.Ages 76+:
Focus on guaranteed issue and final expense coverage. These policies ensure acceptance regardless of health conditions.
Tips for getting the best rates
Apply sooner rather than later—rates increase with age
If you’re in good health, choose policies with medical questions
Compare quotes from multiple providers (that’s where we help!)
Consider paying annually instead of monthly to save on administrative fees
- Think about improving your lifestyle prior to applying
How to Get Started with Senior Life Insurance
Assess your financial needs and coverage goals
Consider your health status and which policy types would accept you
Determine your budget for monthly premiums
Speak with a broker who can compare multiple options
Review the policy details carefully before signing
Why Choose Maple Bay for Your Senior Life Insurance?
At Maple Bay, we understand your desire to provide for your family if something should happen to you. We are insurance brokers, which means we aren’t here to push any particular insurance product. Our goal is to help you find coverage that provides peace of mind without stretching your budget.
Consider how you would pay your bills if you suffered a serious illness and needed to recover. Do you have an emergency fund or would you draw from your savings? Perhaps your credit cards are your emergency fund but what happens if those weeks turn into months? With insurance, you’ll protect your assets and your loved ones, giving you peace of mind.
It’s understandable that no one likes to think about their own death, but it’s not something we have control over. But you can control how well your family is looked after if it happens sooner than you expect.
When you’re ready for a life insurance policy, contact the team at Maple Bay Insurance, and let us help you find the best policy that fits your lifestyle.